A private report has revealed that sanctioned countries, including North Korea, Russia, and Iran, are using cryptocurrencies as diplomatic and economic weapons. The report points out that blockchain technology, which is relatively easy to evade control, is being strategically deployed, posing a new threat to the international order.
Blockchain analytics firm TRM Labs recently reported that several countries are using cryptocurrencies to circumvent existing financial systems, evade sanctions, and for strategic purposes. North Korea, in particular, was cited as a prime example of government-led, large-scale hacking and money laundering, often used to fund national finances.
Threat to the Korean Peninsula: North Korea's Systematic Cryptocurrency Hacking
According to the report, North Korea has stolen billions of dollars in cryptocurrency over the past five years by hacking cryptocurrency exchanges, DeFi (decentralized finance) protocols, and cross-chain bridges. In particular, a North Korean cyber unit known as the Lazarus Group was found to have stolen $1.4 billion (approximately 2.0259 trillion won) from the Bybit exchange in February 2025.
TRM Labs analyzed that the proceeds from these cryptocurrency crimes are being used to fund North Korea's development of nuclear weapons and ballistic missiles. This is supported by data released by Chainalysis in December of last year. According to the report, the total cryptocurrency stolen by North Korean hackers in 2025 reached $2.02 billion (approximately 2.919 trillion won), a 51% increase from the previous year. North Korea was found to be responsible for 76% of all virtual asset service losses.
They laundered the stolen cryptocurrency through mixers and privacy tools, then cashed it out through various blockchains and stablecoins, and then through Asian foreign exchange exchanges.
Cryptocurrencies Evolve into Sanctions Evasion Tools
Cryptocurrencies are also being used as a means of economic evasion by sanctioned countries such as North Korea, Russia, and Iran.
After being shut out of Western financial networks following its invasion of Ukraine in 2022, Russia began using cryptocurrencies for oil transactions with allies like China and India. Pro-Russian groups are reportedly using digital assets as a means of fundraising for military purposes.
Industrial-scale mining operations are also being mobilized in this trend. Russia utilizes its own energy to mine cryptocurrencies, which it then capitalizes on for export and import purposes.
Iran officially legalized Bitcoin (BTC) mining in 2019, integrating cryptocurrency into its official economic system. BTC mined domestically is used for roundabout payments through the central bank, providing some relief from sanctions. According to TRM Labs, Iranian-based miners account for a significant portion of the global hash rate, and these assets are circulated through Middle Eastern intermediaries in the form of refined trade.
The duality of technologyโฆ Some countries are using it to enhance transparency.
On the other hand, TRM Labs points out that blockchain technology isn't solely exploitable. Major countries like the US, Europe, Japan, and Singapore are leveraging blockchain analysis technology to strengthen sanctions enforcement, track ransomware profits, and enhance surveillance systems. For example, the T3 Financial Crimes Unit, through public-private collaboration, froze over $300 million (approximately 433.4 billion won) in criminal assets, a prime example of institutional use of blockchain technology.
The case of Venezuela also draws attention. Hyperinflation and a devalued currency have eroded trust in the local currency, the bolivar. TRM Labs explains that the use of stablecoins as everyday payment tools is rapidly increasing, demonstrating that blockchain is acting as an alternative in this unstable economic environment.
Ultimately, cryptocurrencies are no longer a neutral technology, but are evolving into a strategic weapon for states. TRM's core analysis is that a widening gap exists between states that use them to evade accountability and those that strive to strengthen financial transparency and governance.
๐ Market Interpretation
Cryptocurrencies are being exploited by countries like North Korea, Russia, and Iran to evade state-sponsored sanctions and finance military and trade. Consequently, blockchain is being interpreted in a new light as a geopolitical threat, and the surveillance technologies of policymakers are evolving accordingly.
๐ก Strategy Points
- The use of cryptocurrency in countries like North Korea and Russia is an example of how blockchain's anonymity and decentralization are being utilized for national strategy.
- The phenomenon of dual use expanding between a means of sanctions evasion and a means of legitimate financial management.
The growing role of private analysts: Blockchain intelligence technologies like TRM and Chainalysis are becoming key tools for regulation and surveillance.
๐ Glossary
- Mixer: A tool that mixes transactions between multiple users to hide the source of funds.
Blockchain Bridge: Technology that connects different blockchains to transfer assets.
- Hash rate: A mining performance indicator that represents the computing power of the entire network.
๐ก Want to know more? AI-prepared questions for you:
A. Virtual assets like Bitcoin allow for the circumvention of sanctions through exchanges and protocols. Because they can be transferred across borders without intermediary banks and guarantee anonymity, they are increasingly being used as state funds through hacking, mining, and laundering.
A. By 2025, North Korean hackers had stolen approximately $2 billion in cryptocurrency, with a cumulative total of over $6.75 billion over the past five years. They primarily target DeFi protocols, exchanges, and bridges.
A. Iran legalizes Bitcoin mining and uses it to pay for imports. Russia evades sanctions by accepting cryptocurrency as a means of payment for oil transactions with China and India.
A. Yes. Regulatory powerhouses like the US and Europe are leveraging blockchain analysis to enforce sanctions, track criminals, and track ransomware profits. This has resulted in some successful efforts, including freezing hundreds of millions of dollars in criminal proceeds.
A. Because cryptocurrencies can bypass the existing financial system. Their decentralization allows for autonomous use, and they are becoming a new means of evading sanctions through mining, hacking, and virtual asset transfer.
TP AI Precautions
This article was summarized using a TokenPost.ai-based language model. Key points in the text may be omitted or inaccurate.
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